The Basel Committee on Banking Supervision and economists alike are still struggling to reach a consensus on how countercyclical buffers - a key part of the Basel III regulatory framework - should be calibrated.
"In terms of devising the triggers for countercyclical buffers, there's not much agreement. It makes me uncomfortable," Peter Praet, an executive director at the National Bank of Belgium and a member of the Basel Committee, said at a London School of Economics (LSE) conference on Monday.
- Auditors find ‘flaws’ in ECB’s crisis management framework
- Home truths on Europe’s NPLs
- Central banks lack ‘firepower’ to combat financial crises, says report
- Economists need to better understand macrofinancial links – BIS paper
- Ukrainian bank owners carried out ‘co-ordinated fraud’, forensic audit says